Healthcare Realty Trust Incorporated · NYSE:HR
Healthcare Realty Trust — Healthcare Trust of America — Investor Presentation (November 2012)
15 slides from Healthcare Realty Trust's investor presentation, Nov 28, 2012
Slide 1: November 2012 Company Presentation
November 2012 Company Presentation Exhibit 99.1
Slide 2: Forward looking statements
Leading owner of Medical Office Buildings Forward looking statements This document contains both historical and forward-looking statements. Forward-looking statements are based on current expectations, plans, estimates, assumptions and beliefs, including expectations, plans, estimates, assumptions a
Slide 3: Company Profile
Company Profile Focused Medical Office Building REIT Investment Grade Growing Sector, Defensive Asset Class ¹ HTA’s enterprise value as of November 23, 2012 2 As of 9/30/12. On-campus refers to a property that is located on or adjacent to (within ¼ mile) a healthcare system. Aligned refers to proper
Slide 4: MOB Opportunity
MOB Opportunity Sources: Green Street Advisors, Marcus & Millichap, Rosen Consulting Group 3 Public REIT Owners 6% Other Owners 94% Fragmented Ownership On-Campus is the Best Location • Hospitals create strong tenant demand and retention • Maximizes utilization of significant hospital infrastructure
Slide 5: Macroeconomic and Regulatory Trends
$0 $1 $2 $3 $4 $5 Trillions Macroeconomic and Regulatory Trends 4 MOB’s Positioned to Benefit from Demographics and Affordable Care Act Outpatient Trend Annual Healthcare Expenditures 1,000 1,200 1,400 1,600 1,800 2,000 2,200 110 112 114 116 118 120 122 124 126 128 1989 1991 1993 1995 1997 1999 2001
Slide 6: Company Snapshot as of September 30, 2012
Leading owner of Medical Office Buildings 1 As of 9/30/12 3 Undepreciated assets is defined as Total GAAP assets + accumulated depreciation + accumulated amortization related to tenant relationships and FAS 141/ ASC 805 lease adjustments 3 EBITDA for 3Q12 presented on an annualized basis. EBITDA for
Slide 7: National Portfolio, Regionally Focused
Leading owner of Medical Office Buildings 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 12/31/2010 12/31/2011 9/30/2012 2012 (Year End) In-House Property Management Fully Integrated Asset Management Platform National Portfolio, Regionally Focused Midwest Indianapolis, IN GLA: 2.5 M sf % GLA:
Slide 8: Portfolio Characteristics
Portfolio Characteristics Tenant Mix (by Annual Base Rent) 57% 43% Credit Tenants Not Rated • Strong mix of single and multi-tenant buildings • Multi-tenanted buildings have weighted average lease term of 5.5 years; mix of Gross and NNN leases • Single-tenanted buildings have weighted average lease
Slide 9: Stable Cash Flows
Leading owner of Medical Office Buildings Stable Cash Flows 1 Top 15 Health System Tenants 2 Agency providing credit rating varies by tenant 3 Note that the credit rating might be for an affiliate or parent entity of HTA’s tenant 4 As of 9/30/12 5 Renewal ratio defined as the sum of the total leased
Slide 10: Key Strategic Investments in Economic Downturn
Leading owner of Medical Office Buildings Greenville, SC Key Strategic Investments in Economic Downturn • 964k SF / 17 buildings • Major Tenant: Greenville Hospital System (Moody’s: A1) • Key Acquisition: GHS / $163mm / September 2009 Pittsburgh, PA Phoenix, AZ Albany, NY Boston, MA • 1.2mm SF / 32
Slide 11: Acquisition Strategy
Leading owner of Medical Office Buildings • HTA has developed and maintains extensive industry relationships • Dedicated buyer focused only on MOB space • Acquired $1.8 Bn of properties in 2008- 2010 o HTA was a cash buyer during the economic recession o Limited competition o Attractive pricing • De
Slide 12: Proven Growth Track Record
Leading owner of Medical Office Buildings Proven Growth Track Record Total NOI ($mm) Normalized Funds From Operations1 ($mm) $52 $85 $137 $186 $209 $0 $50 $100 $150 $200 2008 2009 2010 2011 3Q12 $22 $43 $84 $115 $142 $0 $20 $40 $60 $80 $100 $120 $140 $160 2008 2009 2010 2011 3Q12 • 3Q12 Same Store C
Slide 13: Strong, Flexible Balance Sheet
• Over $8 million of unrestricted cash as of 9/30/12 • $562 million of credit facility availability as of 9/30/12 • Average weighted borrowing cost of 4.0% • Average weighted debt maturity of 4.4 yrs3 Strong, Flexible Balance Sheet 5.3x 5.1x 5.4x 6.2x 6.8x 1.0x 3.0x 5.0x 7.0x 9.0x HTA HCP VTR HCN HR
Slide 14: Experienced Management Team
Experienced Management Team Scott Peters Chairman, CEO, and President • Co-Founded HTA in 2006 • CEO of Grubb & Ellis (NYSE), ‘07-’08 • CEO of NNN Realty Advisors, ‘06-’08 • EVP, CFO, Triple Net Properties, Inc., ‘04-’06 • Co-Founder, CFO of Golf Trust of America, Inc. (AMEX), ’97-’07 • EVP, Pacific
Slide 15: Key Investment Highlights
Key Investment Highlights Dividend of $0.575 per share Medical Office Building Specialist 91% Occupancy in Defensive Asset Class Investment Grade Balance Sheet Strong Industry and Macroeconomic Trends Greenville Life Center (Greenville, SC) Desert Ridge (Phoenix, AZ) 14 Healthcare REITs at Significa
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